Aterian, Inc. Settlement Agreement

This document details the settlement agreement between Stacy Dorcas (Plaintiff) and Aterian, Inc. (Defendant) concerning allegations related to the labeling and advertising of Mueller-branded products.

Key Information

This settlement addresses claims that Aterian, Inc. deceptively labeled and advertised Mueller-branded products with the Austrian flag and the name "Austria," leading consumers to believe the products were made in Austria when they were not.

The agreement outlines the terms for compensating Settlement Class Members, including options for cash payments or vouchers for Mueller-branded products. It also includes provisions for injunctive relief, preventing Aterian, Inc. from using the Austrian flag or the word "Austria" on Mueller-branded products and their marketing materials for a specified period.

Settlement Details

  • Total Settlement Fund: $800,000
  • Cash Fund: $500,000
  • Voucher Fund: $300,000
  • Claimant Compensation: Up to $7.50 cash or $15.00 voucher per Covered Product purchased, for up to two products.
  • Injunctive Relief: Prohibits the use of "Austria" or the Austrian flag on Mueller products and marketing for at least five years.
  • Class Representative Service Award: Up to $1,500 for Plaintiff Stacy Dorcas.
  • Attorneys' Fees: To be determined by the Court.

Legal Background

The Action, Case No. CIVSB2222117, was filed in the Superior Court of California, County of San Bernardino. Both parties have engaged in negotiations and mediation to reach this settlement, acknowledging the costs and risks of continued litigation.

Aterian, Inc. denies all allegations of liability and wrongdoing but has agreed to this settlement to resolve the Action and avoid further litigation expenses.

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